Chapter 12: Some Lessons from Capital Market History
Concept Questions
3.
Risk and Return: We have seen that over long periods, stock investments have
tended to substantially outperform bond investmen
Chapter 8: Stock Valuation
Concept Questions
4.
Dividend Growth Model: Under what two assumptions can we use the dividend
growth model presented in the chapter to determine the value of a share of sto
Chapter 01 Introduction to Financial Management Answer Key
Multiple Choice Questions
1. Tim has been promoted and is now in charge of all fixed asset purchases. In other words,
Tim is in charge of:
A.
Chapter 14: Cost of Capital
Concept Questions:
4.
WACC and Taxes: Why do we use an after-tax figure for cost of debt but not for
cost of equity?
Interest expense is tax-deductible while dividends are
Chapter 6: Discounted Cash Flow Valuation
1.
Present Value and Multiple Cash Flows: Seaborn Co. has identified an
investment project with the following cash flows. If the discount rate is 10
percent,
Chapter 12
Problems 1-21
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 12
Question 1 Input area:
Initial price Dividend paid Ending share pr
Chapter 4
Problems 1-30
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 4
Question 1,2 Input area: Sales Costs Assets Debt Equity Sales increa
Chapter 21
Problems 1-19, Appendix 1-5
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 21
Question 1 Input Area: Units Unit price Terms Net Ou
Chapter 18
Problems 1-18
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 18
Question 1 Input Area:
Dividend per share Tax rate Price
$6.00 15%
Chapter 17
Problems 1-21
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 17
Question 1 Input Area:
Market value EBIT Debt issue Interest rate
Chapter 10
Problems 1-27
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 10
Question 1 Input area:
Purchase price Appraised value Cost to buil
Chapter 16
Problems 1-15
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 16
Question 1 Input Area:
Shares outstanding Price New shares New pri
Chapter 13
Problems 1-27
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 13
Question 1 Input area:
Shares of A Share price of A Shares of B Sh
Chapter 9
Problems 1-23
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
B
C
D
E
Chapter 9
Question 1
Chapter 15
Problems 1-23
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 15
Question 1 Input Area:
Dividend per share Growth rate Stock price
Chapter 2
Problems 1-26
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Chapter 2
Question 1
Input area:
Current assets
Net fixed assets
$
5,000
23,00
A commonly cited business goal is profit maximization. Why is this not the most precise goal of
financial management? Referencing a real-life example, why should a corporation not do anything and
ever
Chapter 6
Problems 1-75
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 6
Question 1 Input area: Output area: Discount rate Year 1 2 3 4 24% C
Case Solutions
Cases 1,2,4,5,7
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Case #1 - Cash Flows and Financial Statements at Sunset Boards
Input ar
Chapter 7
Problems 1-32
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Chapter 7
Question 1
Input area:
Coupon
Required rate of return
10%
8%
Output
Chapter 8
Problems 1-22
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 8
Question 1 Input area: Dividend paid Dividend growth rate Required r
Chapter 5
Problems 1-20
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 5
Question 1 Input area: Interest rate Deposit # of years Output area:
Chapter 3
Problems 1-30
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Chapter 3
Question 1
Input area:
Net working capital
Current liabilities
Inven
Chapter 11
Problems 1-28
Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green
Chapter 11
Question 1 Input area:
Variable material cost Variable labor cost
Chapter 26
Problems 1-10
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Chapter 26
Question 1-5
Input Area:
Cost
Life of machine
Lease price
Borrowin
Chapter 5: Introduction to Valuation: The Time Value of Money
1.
Simple Interest versus Compound Interest: First City Bank pays 8 percent
simple interest on its savings account balances, whereas Secon
Chapter 7: Interest Rates and Bond Valuation
Concept Questions
1.
Treasury Bonds: Is it true that a U.S. Treasury security is risk-free?
No! A truly risk-free security is one that is devoid of any ris
Lecture 4 Notes: Financial Statement Analysis Part 1
Ratio, Trend, Common-Size, and Industry Comparison Analyses
Introduction
We have all seen financial wizards and computer geeks in the movies who ca
Book Notes
Chapter 1
What is corporate finance?
The study of ways to answer the following 3 questions:
What long-term investments should you take on?
Where will you get the long-term financing to